Price gap of drinks is closing'

A survey of drink prices at pubs operated by large companies seems to prove claims that the gap between the cheapest and most expensive has closed in the past year. The survey, which uses data from market researchers CGA, shows that Mitchells & Butlers' prices were 14% higher than the industry average in 2002 with the gap closing to 5.4% higher in 2003. Fellow managed operator JD Wetherspoon's prices are about 20% lower than its Lloyds No 1 bars, which are 20% cheaper than most other high-street operators. Greene King, by contrast, has drinks prices 6% higher than the traditional pub market. However, both JD Wetherspoon and Greene King have been moving toward the drinks price average. The Panmure Gordon report stated: "The data shows that JD Wetherspoon's average prices were some 11% cheaper than the rest of the sector in 2002, with the most significant differences in premium draught bitter and packaged lagers. By the end of 2003, we calculate that JDW's prices were 10% cheaper. "In 2002, Greene King's prices were about 5.7% higher than the average. In 2003, they were 5% higher than average.